Debit notes
mreed
Registered Posts: 3
Hi Can anyone please help me I am soooo confused with the subject of debit notes. One of our suppliers has asked that I raise a debit note - briefly what has happened we placed a large order with them for which they raised several different invoices. We required credit notes for several items on different invoices. In the meantime we had a vat return to complete. As we use the cash accounting system I only entered the amounts in the vat return we paid for fully expecting the credit notes to be raised ................... now they are asking for a debit note to be raised by us. We have never issued debit notes before and surely as I havent claimed any vat back on the amount we are awaiting credit notes for, if I issue a debit note including vat will that not mean I have to pay the vat on that note as I would if i raised a sales invoice? Please advise me if you can - I did raise this query with our accountant but he is going through a tough time at mo and his response was "I hate debit notes"
I am looking forward to some one out there helping me with this query if you can
Many thanks in anticipation
I am looking forward to some one out there helping me with this query if you can
Many thanks in anticipation
0
Comments
-
A debit note isn't a cash entry so it won't affect your VAT records if you are on cash accounting. What system are you using?0
-
Hi Gem7321 thank you for your reply. I use a manual system we are not a big company. The company that are requesting the debit note have asked me to include vat on the debit note - do I therefore send it to them in the same format as a credit note? and what do I do with my copy as far as my accounts are concerned.
Sorry to sound so ignorant but I have no come across debit notes before - I cant get my head round why our supplier cant just issue a credit note.
I look forward to hearing from you0 -
Yes essentially you can use the same format as a credit note (obviously just substituting credit for debit) and include the reason for raising it. I would then keep a copy but if you're using a manual system I wouldn't even enter the debit note, just keep a copy as a memo then enter the credit note when you receive it from them. Basically a debit note is a notification to the supplier to raise a credit note.0
-
Hi Gem7321 thank you sooooooooooooo much I really appreciate your help and you have made the concept of a debit note so easy to understand
Many Many Thanks0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 328 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 57 AAT Level 3 Diploma in Accounting
- 95 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 273 VAT
- 92 Software
- 275 Tax
- 138 Bookkeeping
- 7.2K General accounting discussion
- 203 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 583 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership